‘All of this is going to pass’: Nvidia CEO is confident AI rally will continue

The current selloff in AI stocks is temporary, with the technology’s benefits set to outweigh investors’ concerns soon, Nvidia CEO Jensen Huang believes, as reported by Bloomberg. Huang leads the world’s most valuable company by market capitalization, thanks to the AI boom and the accompanying demand for hardware to power it. He previously pushed back against calls to slow AI development from Dario Amodei, CEO of Anthropic, the most valuable start-up in the space.

“All of this is going to pass, and the reason for that is very simple,” Huang said. “It’s going to be transformative. It’s going to impact in a very positive way every single industry and every single country. There’s no question it will continue, and we’re at the beginning of that.”

The Nvidia CEO expects returns from massive investments in hardware to ease market jitters over time. “With respect to some of the news, it’s choppy news,” he said. “News, as you know, happens all the time, but it won’t change the fundamentals.”

Huang urged investors to look beyond near-term reports and concentrate on the technology’s long-term value: “Stay focused on first principles. Stay focused on the fundamentals.”

The remarks came at the end of a difficult week for chip stocks, which fell for an eighth consecutive day on Friday, marking the sector’s longest losing streak since 2008. Nvidia shares fell in seven of the last eight trading sessions. Investors worry that AI spending has already outstripped companies’ ability to generate returns on those investments.

The selloff hit CoreWeave, a cloud-computing provider that counts Nvidia among its biggest backers, particularly hard. Huang came to its defense on Thursday, saying CoreWeave’s financial position is growing stronger and it does not need a Nvidia backstop.

In September, Huang dismissed the need for additional AI safety regulations, pushing back against Anthropic CEO Dario Amodei. Huang views AI chiefly as hardware and software built by humans and believes people can control it under existing laws. He argues that the free market will deter AI developers from releasing unsafe products.

Amodei endorsed slowing AI development in an essay published after a high-profile exit of an Anthropic employee. The employee said Anthropic and OpenAI were “gambling with our lives,” claiming AI could become a threat to humanity. Tesla and SpaceX CEO Elon Musk and OpenAI CEO Sam Altman publicly backed Amodei.